Attached files
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| 8-K - FORM 8-K DATED MAY 19, 2010 - AmREIT, Inc. | amreit102576_8k.htm |
The Irreplaceable CornerTM Company
www.amreit.com
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Disclosure
Cautionary Statement Regarding Forward-Looking Statements
The Company has made forward-looking statements in these materials which are subject to risks and uncertainties. These statements are based on the beliefs
and assumptions of the Company, and on the information currently available to the Company.
and assumptions of the Company, and on the information currently available to the Company.
When used or referred to in these materials, these forward-looking statements may be preceded by, followed by or otherwise include the words “believes,”
“expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or similar expressions, or statements that certain events or conditions “will” or “may” occur.
“expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or similar expressions, or statements that certain events or conditions “will” or “may” occur.
These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described
in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the
forward-looking statements:
• revenue of the Company may be lower than expected
• occupancy rates from the Company’s properties may deteriorate or fail to recover as predicted;
• the Company may not be able to sustain the rental rate increases upon lease renewals that it has recently experienced;
• the Company may experience tenant defaults due to recessionary conditions, as well as tenant bankruptcies and abandonments of leases;
• general economic conditions, either internationally or nationally or in the jurisdictions in which the Company is doing business, may be less favorable than
expected;
expected;
• legislative or regulatory changes, including changes in environmental regulation, may adversely affect the businesses in which the Company is engaged;
• there may be environmental risks and liability under federal, state and foreign environmental laws and regulations; and
• changes may occur in the securities or capital markets.
Where to Find Additional Information
The Company’s stock is registered with the Securities and Exchange Commission (“SEC”) under the 1933 Securities Act and complies with the filing
requirements of the 1934 Securities Act. As such, the Company has made its quarterly Form 10Q and Annual Form 10K filings that are available at the SEC’s
website at www.sec.gov. Additionally, the Company maintains a web site at www.amreit.com where these public filings can be obtained as well as other
corporate and property information.
Except for its ongoing obligations to disclose material information as required by the federal securities laws, the Company has no intention or obligation to update
these forward-looking statements.
these forward-looking statements.
www.amreit.com
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Where Have We Been -
Vision 2010
Vision 2010
www.amreit.com
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Vision 2010 - Phases
Phase I: Business Model - changes to reach greater efficiency and reduce volatility
of earnings. This phase includes the elimination of the general contracting
business and IBD Securities business. G&A Savings of approximately $4.5
million per year. Phase I was executed during the 3rd and 4th quarters of
2008.
of earnings. This phase includes the elimination of the general contracting
business and IBD Securities business. G&A Savings of approximately $4.5
million per year. Phase I was executed during the 3rd and 4th quarters of
2008.
Phase II: Capital Structure - changes to reach greater efficiency and reduce
volatility of earnings. This will include the simplification of AmREIT’s equity
capitalization into one Class of stock, the consolidation of AmREIT into
REITPlus and the privatization of the Company. Phase II was executed
during 2009.
volatility of earnings. This will include the simplification of AmREIT’s equity
capitalization into one Class of stock, the consolidation of AmREIT into
REITPlus and the privatization of the Company. Phase II was executed
during 2009.
Phase III: Growth & Liquidity - made possible by Phase I and II as we pursue our
goal of listing on the NYSE or through an institutional recapitalization.
goal of listing on the NYSE or through an institutional recapitalization.
www.amreit.com
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Phase I - Business Model Changes
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Pre- Phase I
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Budgeted 2010
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G & A
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$14.8 million
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$7.8 million
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No. of Employees
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70
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50
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Transaction Fee Required
To Reach FFO Goal
(including bonus) |
$10 million
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$1.8 million
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AmREIT
Development
Property
Management
Leasing
Asset
Management
General
Contracting
IBD
Securities
www.amreit.com
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AmREIT
$450 Million
$8 Million
AmREIT, Inc.
Phase II - Capital Structure (Three Step Combination)
Step One:
§ Privatization through
voluntary De-listing of Class
A Shares from trading on
NYX
voluntary De-listing of Class
A Shares from trading on
NYX
Step Two:
§ Re-domicile AmREIT from
Texas to Maryland
Texas to Maryland
Step Three:
§ Reverse merger of AmREIT
into REITPlus
into REITPlus
AmREIT
A - 5.3 million shares
C - 4.1 million shares
D - 11.0 million shares
Simplified capital structure with one class of stock outstanding
www.amreit.com
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Strong Balance Sheet, No Material Near Term Maturities
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Secured Debt Maturities
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||
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Year
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Outstanding
Amount |
Percent
of Total |
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2010
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$ 5,083
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3%
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2011
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$ 20,205
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11%
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2012
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$ 14,417
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8%
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2013
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$ 43,985
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24%
|
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2015
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$ 49,000
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27%
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2016
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$ 20,000
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11%
|
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2017+
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$ 29,966
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16%
|
-Total debt represents 48.7% of appraisal value, or approximately 56% of un-depreciated book basis.
www.amreit.com
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Where we are going -
Vision 2012
Vision 2012
www.amreit.com
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AmREIT: Strategic Planning Vision 2012 - Objective
To provide superior long term returns to
Institutional Investors over differing
economic cycles (objective)
www.amreit.com
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AmREIT: Strategic Planning Vision 2012 - Advantage
Through our 26 years of best of class
local acquisition, capitalization,
operation and redevelopment expertise
(advantage)
local acquisition, capitalization,
operation and redevelopment expertise
(advantage)
www.amreit.com
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AmREIT: Strategic Planning Vision 2012 - Scope
And our relentless focus upon the
maximization of value on retail & mixed
use Irreplaceable Corners ™ within
Texas-- the top job growth market in the
U.S. & 12th largest economy in the
world, ahead of Mexico, Russia and India
(GDP). (scope)
maximization of value on retail & mixed
use Irreplaceable Corners ™ within
Texas-- the top job growth market in the
U.S. & 12th largest economy in the
world, ahead of Mexico, Russia and India
(GDP). (scope)
www.amreit.com
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AmREIT: Strategic Planning Vision 2012 - Believability
And through leveraging our $1 Billion
platform, experienced management
team and a portfolio that ranks higher in
qualitative measurements than the gold
standard of the industry, to become the
preferred retail & mixed use investment
choice of the best Institutional Investors
in the U.S. (believability)
platform, experienced management
team and a portfolio that ranks higher in
qualitative measurements than the gold
standard of the industry, to become the
preferred retail & mixed use investment
choice of the best Institutional Investors
in the U.S. (believability)
www.amreit.com
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Our Markets
Regional Focus, Local Sharpshooter
Regional Focus, Local Sharpshooter
www.amreit.com
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Where We Invest and Why
www.amreit.com
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Houston, Dallas, San Antonio/Austin … The
www.amreit.com
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AmREIT, Inc.
Real Estate Platform - Poised for Growth
Real Estate Platform - Poised for Growth
www.amreit.com
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Real Estate Investment Platform
Total Real Estate Platform Approaching $1 Billion
AmREIT Balance Sheet
$450 Mil
Institutional Joint Ventures
$160 Mil
Advised Funds
“High Net Worth Individuals”
$300 Mil
3 Miles 5 Miles Estimated Population: 131,556 426,010 Estimated Ave. HHI: $105,321 $89,900 Year Acquired: 2005 Land Area: 16.85 acres Retail SF: 169,110 SF Traffic Counts: Vehicles Per day Loop 610 300,000 Post Oak 40,000 approx. Uptown Park Corner of Post Oak Blvd. and Loop 610 AmREIT High daytime population with neighboring complementary uses of residential, office and hotel. Development potential for 200 room hotel and 200,000 s.f. office. Increased market rents from high $20’s to low $40’s. NOI exceeding initial underwriting by $800,000.
www.amreit.com
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South Bank on the Riverwalk; San Antonio, TX AmREIT
The Alamo and Riverwalk are the #1 and #2
tourist destinations in Texas.
tourist destinations in Texas.
Due to percentage rent, NOI was $190,000 more
than the original projection upon acquisition.
than the original projection upon acquisition.
Tenant sales have increased consistently for
over 10 years.
over 10 years.
Estimated # of Tourists: 21 million
Year Acquired: 2005
Retail SF: 47,000 SF
Center is anchored by the top grossing Kroger in Texas and the southwest region. Tremendous in-fill location off Highway 59 at the entrance to the affluent West University submarket. 3 Miles 5 Miles Estimated Population: 148,619 410,882 Estimated Ave. HHI: $110,381 $83,529 Year Acquired: 2004 Retail SF: 144,623 SF Traffic Counts: Vehicles Per Day Buffalo Speedway 21,750 Westpark Drive 27,600 US 59 Frontage Rd. 151,000 Plaza in the Park Houston, Texas AmREIT
Shadow Creek Ranch Town Center Corner of Hwy 288 and FM 518 (Broadway); Pearland, Texas Institutional JV Purchased by an AmREIT-affiliated fund along with JP Morgan Asset Management in February 2008. 616,372 s.f. shopping center including all anchor spaces on lease and 15 pad sites Anchor tenants include HEB Plus!, Academy Sports + Outdoors, Hobby Lobby and Ashley Furniture. Pad site tenants include Denny’s, Frost Bank, Comerica, Taco Cabana, Wachovia Bank and Compass Bank. www.amreit.com
www.amreit.com
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3 Miles 5 Miles
Estimated Population: 118,100 389,689
Estimated Ave. HHI: $47,512 $198,278
Year Acquired: 2006
Land Area: 26 acres
Retail SF: 325,000 SF
Traffic Counts: Vehicles Per Day
Buckner 39,760
Garland 35,242
The second oldest shopping center in Dallas; construction began on Casa Linda Plaza in 1945.
Includes 3 of 4 corners. Dense population despite inclusion of White Rock Lake in the 3-mile ring
$6 million renovation completed
Casa Linda Shopping Center
Corner of Garland and Buckner; Dallas, Texas Advised Funds
Corner of Garland and Buckner; Dallas, Texas Advised Funds
www.amreit.com
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3 Miles 5 Miles
Estimated Population: 202,894 571,045
Estimated Ave. HHI: $72,599 $72,317
Year Acquired: 2007
Land Area: 20.7 acres
Traffic Counts: Vehicles Per Day
Westheimer 74,260
Gessner 30,460
Total 104,720
Redeveloping a grocery anchored infill
project with new Safeway guaranteed
ground lease and existing Walgreens.
project with new Safeway guaranteed
ground lease and existing Walgreens.
Woodlake Square
Corner of Westheimer and Gessner; Houston, Texas Advised Funds
Corner of Westheimer and Gessner; Houston, Texas Advised Funds
www.amreit.com
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3 Miles 5 Miles
Estimated Population: 174,988 455,151
Estimated Ave. HHI: $93,626 $88,349
Year Acquired: 2006
Land Area: 3.29 acres
Office SF: 133,507 SF
Traffic Counts: Vehicles Per Day
Westheimer 58,980
Yorktown 11,200
Bought 3.3 acre site with a 133,500 s.f. office building as a re-development opportunity on an
Irreplaceable Corner™.
Irreplaceable Corner™.
aLoft Hotel, a Starwood hotel, opened August 13, 2009.
5433 Westheimer
Corner of Westheimer and West Alabama; Houston, Texas Advised Funds
Corner of Westheimer and West Alabama; Houston, Texas Advised Funds
www.amreit.com
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5433 Westheimer Advised Funds
After
Before
www.amreit.com
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Location, Location, Location
Demographics & Operational Performance
Demographics & Operational Performance
www.amreit.com
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Portfolio Quality:
Source: Merrill Lynch Research, AmREIT Demographics
www.amreit.com
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Portfolio Occupancy
Source: Company Public Filings
www.amreit.com
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Portfolio Leasing Spreads - Location Matters
Source: Company Public Filings
www.amreit.com
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Occupancy & Leasing Spreads
Source: Company Public Filings
www.amreit.com
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Occupancy & Same Store Growth
Source: Company Public Filings (KIM excluded as they did not report SSNOI for 2006 and 2005
www.amreit.com
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Performance Summary
www.amreit.com
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Comparable Company Metrics - Best in Class
Multiple as of April 2010, SS NOI, Occ and Leasing Spread as 5-year average, Leverage & Payout as of 12/31/2009.
www.amreit.com
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AmREIT, Inc.:
The Team
The Team
www.amreit.com
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AmREIT - Management Team
www.amreit.com
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Independent Board of Directors
www.amreit.com
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Next Steps for:
Conformity, Growth, Liquidity
Conformity, Growth, Liquidity
www.amreit.com
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Thoughts on next steps… Vision 2012
Potential Steps/Sources for Growth and Liquidity:
1. IPO on New York Stock Exchange
• Traditional Public REIT Structure
• Concern over FFO Multiples and Size
2. Institutional Joint Ventures - Property Level/Fund Creation
• Maintain entity and strategic control
• Efficiency concerns and fragmented growth
3. Institutional Investment - Balance Sheet
• Increase and Expand AmREIT Balance Sheet with Liquidity
• Lose Control and Concern over Alignment
4. Sell the Company
• Not a Desire - We have a Vision of Growth and Liquidity
Good Things Happen on Great Real Estate™
Pound for Pound…
Best Located Portfolio
in Texas
Best Located Portfolio
in Texas
Thank You
www.amreit.com